Email this article 
Russia and the Netherlands: Trade cooperation within the global value chains framework
- Authors: Sorokina E.M.1
-
Affiliations:
- Peoples Friendship University of Russia
- Issue: Vol 30, No 2 (2022): CHALLENGES OF EFFECTIVE GLOBAL GOVERNANCE IN THE POST-COVID ERA
- Pages: 204-219
- Section: INTERNATIONAL TRADE IN THE CONDITIONS OF GLOBALIZATION
- URL: https://journals.rudn.ru/economics/article/view/31302
- DOI: https://doi.org/10.22363/2313-2329-2022-30-2-204-219
Cite item
Full Text
Abstract
Russia and the Netherlands are crucial trading partners for each other and those countries have enduring trade history, during which there were both periods of “cooling” and “thawing” in trade and investment. Against the background of a global decline in trade and FDI flows, the issue of global production and global value chains (GVCs) cooperation, in particular Russian-Dutch cooperation, is becoming more relevant. Thus, this study aims to determine current trends and features of trade cooperation between Russia and the Netherlands using the decomposition of gross value added (VA) flows, since the analysis of trade in terms of GVCs allows one to more accurately determine the directions and structure of international trade. This issue becomes especially urgent in context of the international production fragmentation slowing down since GVCs, among other things, more accurately illustrate trade and production ties and the interdependence of the world’s economies. The article will consider the general characteristics of trade relations between Russia and the Netherlands in terms of gross trade indicators, determine the place of Russia and the Netherlands in the ranking of their trading partners, show the dynamics of trade and FDI, and also identify the main areas of cooperation between Russia and the Netherlands within the GVC framework with the help of sectoral analysis of VA trade. As a result of the analysis, the author comes to the conclusion that Russia and the Netherlands, firstly, are involved to varying degrees in GVCs, secondly, they participate in opposite directions within GVC flows, which is why they do not equally benefit from participation in global production, thirdly, mutual trade within the framework of the GVC is “one-sided” and unbalanced, and, fourthly, the export and industrial production of the Netherlands relies on Russian intermediate goods in a bigger extent than Russian exporting industries relies on the Dutch once.
About the authors
Ekaterina M. Sorokina
Peoples Friendship University of Russia
Author for correspondence.
Email: ekaterina.m.sorokina@yandex.ru
ORCID iD: 0000-0002-7047-5963
graduate student of International Economic Relations Department of the Economics Faculty
6 Miklukho-Maklaya St, Moscow, 117198, Russian FederationReferences
- Gereffi, G., & Korzeniewicz, M. (1994). Commodity Chains and Global Capitalism. New York: Greenwood Press. 334.
- Hummels D., Ishii J., & Yi K. M. (2001). The nature and growth of vertical specialization in world trade. Journal of international Economics, 54(1), 75–96.
- Johnson, R. C., & Noguera, G. (2012). Accounting for intermediates: Production sharing and trade in value added. Journal of international Economics, 86(2), 224–236.
- Kaplinsky, R. (2000). Globalisation and unequalisation: what can be learned from value chain analysis? Journal of development studies, 37(2), 117–146.
- Koopman, R., Powers, W., Wang, Z., & Wei, S.-J. (2010). Give credit where credit is due: Tracing value added in global production chains. National Bureau of Economic Research. 58
- Leontief, W., & Strout, A. (1963). Multiregional input-output analysis. Structural interdependence and economic development (pp. 119–150). London: Palgrave Macmillan.
- Makarov, A. I. (2018). Trade and economic relations between the Russian Federation and the Kingdom of the Netherlands at the present stage. International trade and trade policy, 14(2), 22–36. (In Russ.)
- Mattoo, A., Wang, Z., & Wei, S. J. (2013). Trade in value added: developing new measures of cross-border trade. London: Centre for Economic Policy Research and the World Bank. 335
- Porter, M. E. 2001. The value chain and competitive advantage. Understanding business processes, (2), 50–66.
- Sanyal, K. K., & Jones, R. W. (1982). The theory of trade in middle products. The American Economic Review, 72(1), 16–31.
- Sidorova, E. A. (2018). Russia in Global Value Chains. World Eсonomy and International Relations, 62(9), 71–80. (In Russ.)
- Simachev, Y. V., Fedyunina, A. A., & Kuzyk, M. G. et al. (2020). Russia in global production. National Research University of Higher School of Economics to the XXI April International Scientific Conference on the Development of Economy and Society. Moscow: Publishing House of the Higher School of Economics. 148. (In Russ.) Retrieved October 20, 2021, from https://conf.hse.ru/mirror/pubs/share/368072348.pdf
- Trade in value-added: concepts, methodologies and challenges (Joint OECD-WTO note). OECD Library. 2012, 28. Retrieved September 26, 2021, from https://www.oecd.org/sti/ind/49894138.pdf
- Volgina, N. A. 2021. Pharmaceutical value chain: opportunities for outsourcing. RUDN Journal of Economics, 29(1), 150–163. (In Russ.)
- World Investment Report 2018: Global Value Chains: Investment and new industrial policies. 2018. United Nations conference on trade and development (p. 196). New York and Geneva. Retrieved September 26, 2021, from https://unctad.org/en/PublicationsLibrary/wir2018_ en.pdf (accessed 26.09.2021)
